Community association management agreements are a common way for homeowner's associations (HOAs) and condominium associations to ensure that their communities are well-maintained and properly managed. These agreements typically include various services, such as maintenance of common areas, financial management, and communication with homeowners.

One common approach to pricing these agreements is to offer a pay-as-you-go model rather than charging one full price for everything. There are several reasons why this approach can be beneficial for both the community association and its members.

First and foremost, a pay-as-you-go model allows community associations to tailor their agreements to the specific needs of their community. Different communities have different requirements for management services, and a one-size-fits-all approach may not be appropriate. By offering a variety of services on an a la carte basis, community associations can ensure that they are meeting the unique needs of their community, while also controlling costs.

In addition, a pay-as-you-go model allows community associations to be more flexible in their management approach. For example, suppose a community has a particularly busy season or a major project that requires additional management support. In that case, they can add the necessary services for that period. This helps ensure that the community is adequately managed during times of increased demand while also avoiding unnecessary costs during slower periods.

For instance, in the case of a construction project, the management company's Regional Director would likely be more involved with the property, and more attention would be required to address any concerns with the project. In such a scenario, it would be reasonable for the management company to charge an additional fee for their services. When services are priced separately, members can see exactly what they are paying for and how much it costs. This helps build trust and confidence in the community association, as members can be assured that their money is being spent wisely.

In closing, a pay-as-you-go model can help to reduce the financial burden on community association members. By offering services on an a la carte basis, members can choose which services they need and can afford rather than being forced to pay for everything upfront. This can help to ensure that community association management remains accessible and affordable for all members, regardless of their financial situation.

Regarding potential kickbacks, while it’s uncommon, it goes without saying that such unethical practices have no place in the business world, and any manager found guilty of demanding or accepting kickbacks should face the full force of the law.